China Banks, ICBC plunge to 9.1% dividend yield – Why I am buying
By Financial Horse  •  July 15, 2023
Goldman Sachs issued a bearish report on China banks earlier this month. The reaction was swift – not in a good way. China bank stocks have plunged since the report was released. Here’s ICBC, trading very close to it’s 2022 lows. At this price, it pays a 9.1% dividend yield, and a 65% discount to book (if book value even means anything for a China bank). You know the saying to be greedy when others are fearful? And also another saying not to catch a falling knife – because markets are generally right? So what do we have here – are the markets right on China banks, or are they horribly wrong? Are China banks at a 9% dividend a good buy? Goldman Sach’s report on the China Banks Let’s start with the report from Goldman Sachs that triggered this latest sell-off. Titled “Testing the ‘Impossible Trinity’”, it is a 3 part series on the China banks issued on 4 July 2023....
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By Financial Horse
Financial Horse was founded with a simple goal – To provide high quality financial commentary, in plain English. He is a firm believer in Einstein’s quote that “If you can’t explain it to six-year-old, you don’t understand it yourself.” Too much of finance is shrouded in complex jargon, and Financial Horse aims to demystify financial investments.

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